Corporate communication of financial risk

Authors: Taylor, Grantley; Tower, Greg; Neilson, John

Source: Accounting and Finance, Volume 50, Number 2, June 2010 , pp. 417-446(30)

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Abstract:

This study provides insights on the Financial Risk Management Disclosure (FRMD) patterns of Australian listed resource companies for the 2002-2006 period leading up to and immediately following adoption of the International Financial Reporting Standards (IFRS). Regression analysis demonstrates that corporate governance and capital raisings of firms are significant and positively associated with FRMD patterns. In contrast, overseas stock exchange listing of firms is significantly negatively associated with FRMD patterns. The findings show that the introduction of IFRS changes corporation's willingness to communicate risk information.

Keywords: Financial risk management; IFRS; Corporate governance; Capital raisings; Overseas listing; Audit qualification; M49

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-629X.2009.00326.x

Publication date: 2010-06-01